Varian Medical (NYSE:VAR) yesterday topped the consensus earnings forecast on Wall Street with its fiscal first-quarter results, despite a slide into red ink, sending share prices up today in pre-market trading.
The Palo Alto, Calif.-based company posted losses of -$112.2 million, or -$1.22 per share, on sales of $678.5 million for the three months ended Dec. 29, 2017, for a top-line gain of 12.8%.
Adjusted to exclude one-time items, including a $234.7 million charge for taxes on earnings as a result of the tax reforms enacted last year, earnings per share were $1.06, 4¢ ahead of The Street. Analysts there were looking for sales of $682.4 million.
“We are very pleased with the strong start to the new fiscal year,” CEO Dow Wilson said in prepared remarks. “We generated healthy orders, revenues and operating earnings growth in our Oncology business, and added two more proton therapy orders.”
“I’m delighted with our operational focus and execution in delivering these strong financial results during the quarter,” added CFO Gary Bischoping Jr.
Varian said it now expects to post adjusted EPS of $4.24 to $4.36 this year on sales growth of 4% to 7%.
VAR shares were up 7.8% today to $122.00 apiece in pre-market trading.